ETE’s net income attributable to partners was $212 million for the three
months ended June 30, 2017 compared to $241 million for the three months
ended June 30, 2016. Distributable Cash Flow, as adjusted, for the three
months ended June 30, 2017 was $240 million compared to $276 million for
the three months ended June 30, 2016. The decreases in net income
attributable to partners and Distributable Cash Flow, as adjusted, were
primarily driven by a reduction in incentive distributions as previously
agreed to between ETE and ETP, as well as the impact of the ETP and
Sunoco Logistics Partners L.P. (“Sunoco Logistics”) merger in April
2017, as discussed below.

The Partnership’s recent key accomplishments and other developments
include the following:

In July 2017, ETE announced a $0.285 distribution per ETE common unit
for the quarter ended June 30, 2017, or $1.14 per unit on an
annualized basis.

As of June 30, 2017, ETE’s $1.5 billion revolving credit facility had
$1.20 billion of outstanding borrowings and its leverage ratio, as
defined by the credit agreement, was 3.81x.

The Partnership has scheduled a conference call for 8:00 a.m. Central
Time, Wednesday, August 9, 2017 to discuss its second quarter 2017
results. The conference call will be broadcast live via an internet
webcast, which can be accessed through www.energytransfer.com
and will also be available for replay on the Partnership’s website for a
limited time.

The Partnership’s principal sources of cash flow are derived from
distributions related to its direct and indirect investments in the
limited and general partner interests in Energy Transfer Partners, L.P.
(“Post-Merger ETP”), including 100% of ETP’s incentive distribution
rights, limited and general partner interests in Sunoco LP, as well as
the Partnership’s ownership of Lake Charles LNG. In connection with the
merger of Energy Transfer Partners, L.P. (“Legacy ETP”) and Sunoco
Logistics in April 2017, the Legacy ETP Class H units were cancelled,
and ETE now owns 27.5 million Post-Merger ETP Common Units (representing
2.5% of the total outstanding Post-Merger ETP common units). The
Partnership’s primary cash requirements are for general and
administrative expenses, debt service requirements and distributions to
its partners.

Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited
partnership that owns the general partner and 100% of the incentive
distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP)
and Sunoco LP (NYSE: SUN). ETE also owns Lake Charles LNG Company. On a
consolidated basis, ETE’s family of companies owns and operates a
diverse portfolio of natural gas, natural gas liquids, crude oil and
refined products assets, as well as retail and wholesale motor fuel
operations and LNG terminalling. For more information, visit the Energy
Transfer Equity, L.P. website at www.energytransfer.com.

Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership that owns and operates one of the largest and most
diversified portfolios of energy assets in the United States.
Strategically positioned in all of the major U.S. production basins, ETP
owns and operates a geographically diverse portfolio of complementary
natural gas midstream, intrastate and interstate transportation and
storage assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; NGL fractionation; and various
commodity acquisition and marketing assets. ETP’s general partner is
owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information,
visit the Energy Transfer Partners, L.P. website at www.energytransfer.com.

This news release may include certain statements concerning expectations
for the future that are forward-looking statements as defined by federal
law. Such forward-looking statements are subject to a variety of known
and unknown risks, uncertainties, and other factors that are difficult
to predict and many of which are beyond management’s control. An
extensive list of factors that can affect future results are discussed
in the Partnership’s Annual Report on Form 10-K and other documents
filed from time to time with the Securities and Exchange Commission. The
Partnership undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.

Following the merger of Legacy ETP and Sunoco Logistics in April
2017, the Post-Merger ETP partnership agreement contains
distribution requirements consistent with those of Sunoco Logistics
prior to the merger.

(2)

IDR relinquishments for the three months ended June 30, 2017 include
the impact of incentive distribution reductions agreed to between
ETE and Legacy ETP in addition to incentive distribution reductions
previously agreed to between Legacy ETP and Sunoco Logistics.

(3)

ETE previously paid Legacy ETP certain fees for management services
under agreements expired in the first quarter of 2017.

(4)

Includes distributions of $0.11 per common unit for the three months
ended June 30, 2017, and $0.22 per common unit for the six months
ended June 30, 2017, to unitholders who elected to participate in a
plan to forgo a portion of their future potential cash distributions
on common units for a period of up to nine fiscal quarters,
commencing with the distributions for the quarter ended March 31,
2016, and reinvest those distributions in ETE Series A convertible
preferred units representing limited partner interest in the
Partnership.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF DISTRIBUTABLE CASH FLOW

(Dollars in millions)

(unaudited)

Three Months EndedJune 30,

Six Months EndedJune 30,

2017

2016

2017

2016

Net income attributable to partners

$

212

$

241

$

451

$

553

Equity in earnings related to investments in ETP and Sunoco LP

(273

)

(334

)

(598

)

(732

)

Total cash distributions from investments in subsidiaries

284

345

546

758

Amortization included in interest expense (excluding ETP and Sunoco
LP)

3

3

5

6

Other non-cash (excluding ETP and Sunoco LP)

10

7

44

1

Distributable Cash Flow

236

262

448

586

Transaction-related expenses

4

14

7

40

Distributable Cash Flow, as adjusted

$

240

$

276

$

455

$

626

Distribution coverage ratio(1)

0.96x

1.15x

0.91x

1.30x

(1)

This press release and accompanying schedules include the
non-generally accepted accounting principle (“non-GAAP”) financial
measures of Distributable Cash Flow and Distributable Cash Flow, as
adjusted. The Partnership’s non-GAAP financial measures should not
be considered as alternatives to GAAP financial measures such as net
income, cash flow from operating activities or any other GAAP
measure of liquidity or financial performance.

Distributable Cash Flow and Distributable
Cash Flow, as adjusted. The Partnership defines
Distributable Cash Flow and Distributable Cash Flow, as adjusted,
for a period as cash distributions expected to be received in
respect of such period in connection with the Partnership’s
investments in limited and general partner interests, net of the
Partnership’s cash expenditures for general and administrative
costs and interest expense. The Partnership’s definitions of
Distributable Cash Flow and Distributable Cash Flow, as adjusted,
also include distributable cash flow from Lake Charles LNG to the
Partnership. For Distributable Cash Flow, as adjusted, certain
transaction-related expenses that are included in net income are
excluded.

Distributable Cash Flow is a significant liquidity measure used by
the Partnership’s senior management to compare net cash flows
generated by the Partnership to the distributions the Partnership
expects to pay its unitholders. Due to cash expenses incurred from
time to time in connection with the Partnership’s merger and
acquisition activities and other transactions, Distributable Cash
Flow, as adjusted, is also a significant liquidity measure used by
the Partnership’s senior management to compare net cash flows
generated by the Partnership to the distributions the Partnership
expects to pay its unitholders. Using these measures, the
Partnership’s management can compute the coverage ratio of
estimated cash flows for a period to planned cash distributions
for such period.

Distributable Cash Flow and Distributable Cash Flow, as adjusted,
are also important non-GAAP financial measures for our limited
partners since these indicate to investors whether the
Partnership’s investments are generating cash flows at a level
that can sustain or support an increase in quarterly cash
distribution levels. Financial measures such as Distributable Cash
Flow and Distributable Cash Flow, as adjusted, are quantitative
standards used by the investment community with respect to
publicly traded partnerships because the value of a partnership
unit is in part measured by its yield (which in turn is based on
the amount of cash distributions a partnership can pay to a
unitholder). The GAAP measure most directly comparable to
Distributable Cash Flow and Distributable Cash Flow, as adjusted,
is net income attributable to partners.

Distribution Coverage Ratio. The
Partnership defines Distribution Coverage Ratio for a period as
Distributable Cash Flow, as adjusted, divided by total cash
distributions expected to be paid to the partners of ETE in
respect of such period.

SUPPLEMENTAL INFORMATION

FINANCIAL STATEMENTS FOR PARENT COMPANY

Following are condensed balance sheets and statements of operations
of the Parent Company on a stand-alone basis.